US CPI release time approaches, market opportunity as BTC continues to rise to $90,000

The recent cryptocurrency market has shown an independent upward trend. While the US stock market is generally under pressure, BTC rebounded to around $90,000 (latest price $89.93K), and ETH also regained above $3,000 (latest price $3.02K). This wave of market movement is similar to the rally at the beginning of last week. The main factor driving the price up comes from the US core CPI data, which was lower than market expectations. The market interprets this as a sign that inflation pressures are not as severe as previously thought, leading to a new round of expectations adjustments regarding the Federal Reserve’s interest rate policy.

Core CPI Data Below Expectations, Driving Cryptocurrency Rebound

The timing of the core CPI release has become a market focus. When official data falls below expectations, it immediately sparks optimistic expectations among investors that the Fed may pause interest rate hikes. This psychological shift is enough to reverse the previously sluggish market sentiment over the past week, resulting in a noticeable rally in the cryptocurrency market. Meanwhile, market forecasts that the January rate decision may remain unchanged have also been reinforced, further supporting the price trend.

Gains and Losses Are Justified: Geopolitical Factors Behind the US Stock Market Pullback

From another perspective, the performance divergence between US stocks and cryptocurrencies reflects the need for cyclical market adjustments. The correction after consecutive record highs in US stock indices is fundamentally similar to the rebound from lows in cryptocurrencies—rising too much leads to a fall, and falling too much leads to a rebound. The apparent reason for the US stock decline actually points to the same underlying factor: escalating tensions in Iran. Recently, Trump announced support for Iranian opposition protesters, and market expectations suggest that geopolitical risks could escalate into actual conflict. The cryptocurrency market reacts more sensitively to this risk, thus showing early signs of decline.

Federal Reserve Policy Shift, Upcoming Data Releases Are Key

In the coming days, the US will release another set of inflation-related PPI data, and several Fed officials will also make policy statements. The key data released after these CPI reports will directly influence market volatility. Until the Fed’s policy stance becomes clearer, geopolitical factors remain the market’s focus. If the US or Israel confirms military action against Iran, the cryptocurrency market will likely face short-term correction pressures.

Before the Situation Becomes Clear, Rebound Opportunities Are Worth Seizing

However, once geopolitical risks become clearer, the market may usher in a new round of rebound opportunities. During this period of uncertainty, careful observation of upcoming CPI release times and related data will help investors identify potential trading opportunities. Although current prices (BTC $89.93K, ETH $3.02K) have pulled back from highs, they still hold rebound potential under the expectation of supportive Fed policies and improving inflation data. The next few days may be a critical period worth close attention, as every market fluctuation could contain new investment opportunities.